What is the present worth of the planned expenditures

Assignment Help Business Economics
Reference no: EM13815510

A construction company in Kurdistan expects to spend $4,000 two years later, $8,000 three years from now, and $6,250 six years from now. What is the present worth of the planned expenditures if the interest rate remains 11.8% per year? Use standard notation (equation).

Reference no: EM13815510

Questions Cloud

Determine the number of our devoted to work and leisure : Suppose that trade off between work N and leisure L for a constant level of utility of 200 is expressed as u(n, L) = NL or 200= NL the budget constraint is l =24-w/P)N for a wage rate of w/P=4 determine the number of our devoted to work and leisure
Best-selling awesome gadget : Your manufacturing company is currently producing just enough of its best-selling Awesome Gadget X to me this year’s demand. The fore cast for the next year is in, and its demand is expected to double (1 million new units per yr.) and stay at this le..
Strong supporter of free trade-international trade policy : If you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered theirs also? Di..
Distort trade according to comparative advantage : A subsidy on exports is, in a sense, the opposite of a tariff on imports. If a tariff lowers efficiency, would you expect a subsidy to increase efficiency or lower it? How do tariffs and subsidies compare in the way they distort trade according to co..
What is the present worth of the planned expenditures : A construction company in Kurdistan expects to spend $4,000 two years later, $8,000 three years from now, and $6,250 six years from now. What is the present worth of the planned expenditures if the interest rate remains 11.8% per year? Use standard n..
What is the equivalent annual worth of this bonus : A supermarket wants to allocate 1.75% as bounce to reward the hardworking employees from the total that will be made annually. The sales are expected to be $250,180 in the first year and $262,180 in the second year. The amount increases each year by ..
Calculate the present worth of the equipment : Calculate the present worth of the equipment described in question 4 given a 10% discount rate. An entrepreneur has found a way to turn straw into gold, but he needs $5 million to create the necessary machinery. He wants to earn a 25% rate of return ..
What about in a country with a growing tax base : Would a dynamic approach to taxation be more likely to lead to economic growth than the static approach in a country with a falling tax base? What about in a country with a growing tax base?
Savings and investment necessary for economic growth : As a means for less developed countries to attract the savings and investment necessary for economic growth and development, is short-term portfolio investment better than Foreign Direct Investment? Explain.

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what dollar wage must be paid in the second year

pecifies that the real wage will rise by 10 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.1 in the second year. Illustrate what dollar wage must be paid in the second year.

  Differentiation strategies vary in degree of effectiveness

Differentiation strategies vary in degree of effectiveness from one type of market structure to another. For firms other than perfect competition

  According to the theory of liquidity preference

Suppose a computer virus disables the nation’s automatic teller machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand, increasing the demand for money. Assume the Fed does not change the m..

  Otal revenue curve over these two ranges of the demand

Assume that over a range of prices, the price elasticity of demand varies, total revenue curve over these two ranges of the demand curve as price fall.

  Find the amount of consumer surplus and producer surplus

Suppose you have the following demand and supply schedules: Qd = 900-10p+2Y and Qs= -50+25P where Qd and Qs are quantity demanded and supplied, respectively, Y is average income (in 1000s) in the area and P is the price of the good. Suppose Y=50. Fin..

  Compute the consumer price index

Consider a small economy in which consumers buy only two goods pies and tarts. In order to compute the consumer price index for this economy for two or more consecutive years.

  Illustrate what was the real interest rate you paid

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, illustrate what was the real interest rate you paid.

  When firms are deciding on the size of stock

DeAngelo Corp.'s projected net income is $150.0 million, its target capital structure is 25% debt and 75% equity, and its target payout ratio is 65%. DeAngelo has more positive NPV projects than it can finance without issuing new stock.

  Annually owing to the aircraft’s fuel efficiency

An airline is considering the purchase of an Airbus A-320neo which offers improved fuel efficiency over the previous generation of narrow-body aircraft. The finance department estimates the aircraft will generate a positive net cash flow of $6 millio..

  Debt-consolidation loan from champion

In the cas Palmer v. Champion Mortgage Palmer received a debt-consolidation loan from Champion. When she signed the loan agreement, she also received the required TILA disclosures.

  Qi would like to figure out the relevant cost in some cost

q.i would like to figure out the relevant cost in some cost flight operation salaries of flight crew fuel maintenance

  What long run adjustments should you anticipate

what price and quantity of computers should you produce to maximize your firm's profits. What long run adjustments should you anticipate.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd